Project

1.
INDUSTRY PROFILE
1.1. Introduction of dairy
Dairy farming is concerned with the production of milk, butter and cheeses constitute a dairy. Dairy farming is the scientific basis of maintaining the herd of cows and buffaloes, collection and preservation of large quantity of milk and producing the by-products to meet the demands of consumers. The milk production in India has multiplied since the advent of 5 years plan. The National Dairy Research Institute (NDRI) was established in Haryana during the first 5 year plan (1951-1956). Later National Dairy Corporation (NDC) and the Indian Veterinary Research Institute (IVRI) were established for the development of dairy technology to boost milk production through scientific methods. In 1970, the government of India launched a massive dairy development project called "operation flood" which brought "white revolution in India".
1.2. About milk

Milk is highly nutrition and majority of Indian population rely on milk for their protein supplement. Milk is obtained by cows and buffaloes, either manually or through satirized milk cream, cheese, ghee, condensed milk protein are the dairy products which are separated from milk through various process.
1.3. Karnataka milk federation (KMF)

The first dairy in Karnataka was started in Kudige in Kodagu district in 1955, further in June 1974; an integrated project was launched in Karnataka to restructure and reorganize the dairy industry on the co-operative principle and to lay foundation for a new direction in dairy development. In 1975, the World Bank aided dairy development was initiated. The present Karnataka Milk Federation (KMF) came into existence in 1984-as a result of merging of Karnataka Dairy Development Co-operation, small co-operatives and Karnataka Milk Production Development and loose vendors.
SVIT DEPARTMENT OF MANAGEMENT STUDIES
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1.4. Objectives
Karnataka Milk Federation (KMF) is a cooperative apex body in the state of Karnataka representing dairy farmers association and also implementing dairy development activities to achieve the following objects: To provide assured and remunerative market for the milk produced by the farmer members. To provide quality milk to urban and rural consumers. To build village level institutions in cooperative sector to manage the dairy activities. To facilitate rural development by providing opportunities for self employment at village level prevention migration to urban areas introducing cash economy and opportunity for steady income. The philosophy of dairy development is to eliminate middlemen and organize institutions to be owned and managed by the milk producers themselves, employing professionals & Achieve economies of scale to ensure maximum returns to the milk producers, at the same time providing wholesome milk at reasonable price to urban and rural consumers.
1.5. Organization status

At the end of March 2011, the network of 8363 Dairy cooperative Societies (DCS) has been organized and is spread over 166 Taluks of the total 175 taluks in all the district of Karnataka. These societies have been organized into 13 milk unions. The unions are further federation. There are 38 chilling centers (capacity 12.49 LLPD). 4 number of farm coolers (capacity O.I6). 17 number of liquid milk plants and two products dairies for chilling and processing (21.20 LLPD), conversation (25 TPD) and marketing of milk. Under technology mission for dairy development project, it had been envisaged to distribute liquid nitrogen, which is required to stores straws. Six silos 10,000 Liters- Each silo has been at Bangalore, Mysore, Gulbarga, Dharwad, Hassan and Shimoga union jurisdiction at a total cost of 3.0 Crores. KMF has been taken the responsibility to supply LN2 in road tankers to the storage silos.
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1.6. Dairy industry- an overview

In 1965, National Dairy Development Board (NDDB) was set up with the object of meeting the demand of milk, especially in urban areas, as well as developing the rural economy through the enhancement of the milk production of the country. In 1970 National Dairy Development Board took up operation flood program in order to organize milk producers cooperative in several places in India taking the kharia district (ANAND) cooperative milk producers union limited (AMUL) of Anand, Gujarat as a model with the above object in view. STRUCTURE OF MILK CO-OPERATIVES IN INDIA
NDDB NDDB State level milk Federation
District level milk federation District level District level milk federation milk federation Milk producers cooperative limited milk federation
1.7. History of dairy co-operative in India
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The co-operative movement started in India in the last decade of the 19 th century with two objects in view, i.e., to protect the farmers from the hands of the private money lenders and to improve their economic condition. The history of dairy development movement in India is a new one. The most notable of this venture was kharia district co-operative milk producer union limited of Anand, Gujarat. But after independence, the national government took great initiative in setting up new dairy cooperative in many parts of India. The National Dairy Development Board was set up to make the ambitious project a success. Dairy industry is playing a vital role in providing quality and hygienic milk and other milk products at a competitive price to the consumer as well as it is offering/providing employment opportunities to rural folk. In June 1974, an integrated project was launched in Karnataka to restructure and reorganize the dairy industry to the co-operative principle and to lay foundation for a new direction in dairy development project was initiated in 1975. Initially the project covered 8 southern districts of Karnataka. Dairy Development Co-operative was set up to implement the project. The multi-level organization with total vertical integration of all dairy development activities was set up with co-operative societies at grass roots level, milk unions at the middle level and a dairy development co-operative societies at stage level as an apex body vested with the responsibilities of implementing Rs.51 crores project. At the end of September 1984 the World Bank aided project ended and the dairy development activities continued under operation flood-2. The activities were extended to cover entire state expect coastal Talukas of Uttar Karnataka districts and the process of dairy development was continued in second phase from april-1984. KMF came into existence in may-1984 as a successor to KCDC. The spills over works are finance by NDDB from 1-41996 under different terms and conditions. After the closure of operation flood-2 the dairy development activities which continued under the operation flood-3 on 31sl march. During the pre-independence period this moment was extended to few parts of India namely the Bangalore, Madras and Calcutta. The operation flood was undertaken after the national dairy development board formed in 1965. It was decided that milk co-operative formed in ANAND would be followed across the country. The Anand pattern has been accepted as a model.
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Dr.V.Kurian, is Regarded as the father of white revolution. The main objective of the white revolution was to provide quality milk to the nation and upgrade the living standard of the rural people
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2. COMPANY PROFILE
Mother dairy, Bangalore was commissioned under operation flood-2 with a processing capacity of 2 lakh per day on 7-12-1984, with an investment of Rs 6.97 crores, at Yelahanka New Town in a total area of 28.09 acres. It is expanded to 4.00 lakh liters under operation flood -3 during 1993-944 with an additional cost of Rs 3.64 crores. Total investment for this project is Rs 10.61 crores. As at the end of March 2011, the network of 8363-Dairy co-operative Societies (DCS) have been organized and spread over 166 talukas of the total 175 talukas in all the districts of Karnataka. These societies have been organized in to 13 mild unions. These are 38 chilling (capacity 12.49 LLPD), 4 no's of farms cooler (capacity 0.16), 17 no's of liquid milk plants & 2 products dairies of chilling and processing (21.20 TDP) and marketing of milk. (A) Operation Status: The average procurement of milk touched a pack of 20.28 LKPD in November 1999. In March 2000 liquid milk sales was at the level of 15.2 LLPD. The sales of cattle feed were 1. 10,605 during 1999-2000. The turnover of the organization during 1999-2000 was Rs 998.39 crores, it grown to 3000 crores during 2011-12. (a) Dairy Co-operative Societies: DCS Role: Dairy cooperative societies are a basic organization unit functioning at the village level. Democracy is practiced at the grass root level in these societies which are organized on the cooperative principles. By training local people to organize and manage the activities, village level institution building and development of local leadership is promoted. All milk cattle owners are eligible to become members of the dairy co-operative societies b) DCS Functions: The DCS function daily and acts as a marketing outlet for the milk produced in the village. Input facilities are also channelized to the dairy farmers through these societies and including veterinary first aid, sales of cattle feed, supply of fodder seeds, seedlings, provision of know how etc., payment for the milk purchased is also arranged through the society, a strong of DCS is organized to form a milk procurement route linked to chilling Centre or a dairy. SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 6
(c) Milk union: Union is the middle tier of the complex co-operative organized network. Federating the societies in ear marked geographical area forms union. The milk unions are organized to make them economically viable and the jurisdiction extends from one district to 3 districts. (d) Function of the union DCS are grouped at district level into co-operative milk producer's unions. The unions organized new DCS, with their management including audit of Accounts, Supervise, Purchase, Process and Market the liquid milk. (B) Milk Federation (a) Role: The Karnataka cooperative milk producer's federation ltd. came into existence on 1-51984 by federating the milk unions in the state and thus forming the state level apex organization. The project activities are being implemented by the federation. When all the project activities are completed, the main role of the federation will be to market surplus milk products and to produce and supply centralized inputs. (b) Federation Functions: Presently mother dairy and "Nandini milk product" at Bangalore are under the control of KMF. Four cattle feed plants a central training institute and a centralized testing and quality control laboratory are functioning under the direct control of KMF. Co-operation of activities between unions and developing market for the increasing milk production is the responsibility of KMF. Local milk market for the increasing milk production of the KMF. The respective unions are organizing local milk market in the area of union. Surpluses and deficiencies of liquid milk amongst the member milk union and disposing milk added the federation manager's products at a remunerative price. The federation organizes marketing of liquid milk and products outside the state. Milk and milk products are sold under Nandini Brand name, which has become household name in Karnataka. To make products available to consumers, distribution network has been established and sales depots are commissioned at Bangalore, Hubli, SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 7
Chennai, Tirupati, Mangalore, Mysore and Gulbarga. The distribution network includes 150 major professional wholesale dealers spreading across all the southern states of India. The major quantity of milk is sold as liquid milk. This parts other products like Butter, Ghee, and Peda, Flavored milk. Burfi, Fanner, Kova, Jamoons, Mysore pak, Badam powder and Ice cream are sold. (c) Prospective plan 2005: Karnataka milk Federation, milk unions and National Dairy Development Board are formulating appropriate strategies in order to meet the challenges particularly after liberalization and de-licensing the dairy sector to develop and strengthen dairy co-operative movement on the following trust areas namely:

Productivity enhancement Co-operative business {procurement processing and marketing } Quality assurance programme National information networking With a view of enhancing and extending Karnataka Dairy Development
infrastructure, under KMF'S perspective plan 2005 NDDB is providing finance and requisite support to Karnataka Dairy Development up to Rs.250 crores. Under this plan, it is envisaged to establish another cooperative society covering a total of 17.5 lakh members. The procurement by cooperative is likely to rise to 25 LKPD and milk marketing 21 LLPD. With additional infrastructure facilities to be created the total processing capacity available will be 29.80 LLPD, chilling capacity 5.17 LLTD, chilling capacity 5.17 LLPD and cattle feed capacity of 700 MT per day. (D) New projects
Strengthening of Frozen Semen Bank, Hessaragatta with an investment of Rs.2.68 crores. Revamping and expansion of Gubbi cattle feed plant from 100 MT to 150 MT per day at an outlay of Rs.2.14 crores. Expansion of Hassan cattle feed plant from 100 MT per to 200 MT per day at an outlay of Rs.4.63 crores.
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KMF corporate office complex at koramangala at an estimated cost of Rs.2.90 crores.
(E) Performance highlights
State entirely covered by dairy development. Elected boards in position in all unions and federation. Processing units controlled by respective milk producers' unions. 97% of functioning milk producers' cooperative societies earning profit. In the last 10 years, for milk produced Rs.7683crores has been paid to dairy farmers. At present an average payment of Rs.342 lakh per day is paid to milk producers. High capacity utilization of cattle feed plants. Bulk suppliers of SMP, WMP to Army. Low price spread between procurement and sale prices. Widespread dispersal of cross breed cattle. Coverage of 4, 00,243 numbers of women members (24%) and about 2.88.760 numbers of landless labourers (17%) under the project. Milk supply to Calcutta mother dairy through railway tankers from Mother dairy. Bangalore. Successful implementation of state government aided dairy development programme through SC/ST development & backward class development corporations. Coverage of 2.10 lakh farmer members under social security insurance scheme benefiting 727 numbers of families so far. Implementation of 'MINI Dairy scheme' for rural unemployed youth sanctioning 2000 units so far which comprises 5 cows per unit.
2.1. Background and inception of the company:

In June 1974, an integrated project was launched is Karnataka to restructure and recognize the dairy industry on the cooperative principle and to lay foundation for a new direction in dairy development. Work on the first year, World Bank aided dairy development project was initiated in 1975. Initially the project covered 8 southern districts of Karnataka SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 9
and Karnataka dairy development corporation was set up to implement the project. The multilevel, multiunit organization with total vertical integration of all dairy development activities was set up with dairy cooperative societies at grass root level, milk unions at the middle level and a dairy development corporation at the state level as an apex body, vested with the responsibility of implementing Rs.5 1 crores project. At the end of September 1984 the World Bank aided project ended and the dairy development activities were extended to cover the entire state except coastal taluks of Uttar Kannada district and the process of dairy development was continued in the second phase from April 1984. KMF came into existence in May 1984 as a successor to KDDC. After the closure of operation flood -II, the dairy operation flood-Ill ended on 31-3-1996. The post operation flood works are financed by NDDB from 1-4-1996 under different terms and conditions.
2.2. Nature of business carried:

(a) Procurement: Mother Dairy is procuring 2.4 lakh liters of milk per day from Kolar Milk Union's Chilling Centres such as Chintamani.Sadali and Gowribidanur Chilling Centres of Kolar Milk Union & Dairy Cooperative Societies which are possessing Bulk Milk Coolers, through road milk tankers. The Dairy is processing and distributing on an average 2.25 lakh litres of milk per day to the consumers in Bangalore City With the increase in demand for liquid milk, it is planned to increase the processing capacity of the Dairy. (b) Production: In addition to production of Toned Milk in Sachet, it also produces Full Cream Milk in Sachet (6.0% FAT and 9.0% SNF) and products like White Butter, Ghee, Curds, Icecream, and Homogenized pure cow's milk with a fat % of 3.5 and 8.5% S.N.F.
2.3. Vision, mission, quality policy:

VISION: "WISH TO GROW IN TO A MODEL MILK CO OPERATIVE SOCIETY IN THE COUNTRY" SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 10
To consolidate the gains of dairying achieved in the states of Karnataka and with a view of to efficiently chill, process and market ever developing and increasing milk procurement with an utmost emphasis on the quality and in the process conserve the socio economic interests of rural milk producers MISSION: "To consolidate of dairy, achieved in the states of Karnataka and with a view of efficiency chill, process and market ever developing and increasing milk procurement with an at most emphasis on the quality". Procuring the raw milk from the local farmers at a fair price. Pasteurization and homogenizing of the procured raw milk. Producing other milk products Transporting the pasteurized milk in various quantities from processing plant to the urban areas. Supply milk to the consumer at a reasonable rate. Developing good infrastructure facilities.
Quality policy:
Every employee of mother dairy will strive for customer satisfaction by providing quality milk and milk products at competitive rates and timely delivery through continual improvement. Mother dairy is committed to supply safe milk and milk products and to the satisfaction of customers. By complying with statutory & regulatory requirements. This commitment is supported by measurable objective and shall be reviewed for continued suitability from time to time.
2.4. Product profile:

Presently mother diary and Nandini milk product at Bangalore are under the control of KMF. Total 8,363 dairy cooperative societies have been organized and spread over 166 Taluks of the total 175 Taluks in all the Districts of Karnataka. SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 11
Nandini Products:
TONED MILK
Karnataka's most favourite milk. Nandini Toned Fresh and Pure milk containing 3.0% fat and 8.5% SNF. Available in 500ml and 1ltr packs. Available in 500ml and 1ltr packs.
HOMOGENISED TONED MILK
Nandini Homogenised Milk is pure milk which is homogenised and pasteurized. Consistent right through, it gives you more cups of tea or coffee and is easily digestible. Available in 500ml.packs.
FULL CREAM MILK
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Full Cream milk. Containing 6% Fat and 9 % SNF.A rich, creamier and tastier milk, Ideal for preparing home-made sweets & savouries. Available in 500ml., and 1ltr packs.
GOOD LIFE MILK Cow's pure milk, UHT processed bacteria free in a tamper-proof tetra-fino pack which keeps this milk fresh for 60 days without refrigeration until opened. Available in 500ml Fino and in 200ml Bricks at premium stores across the state.
SMART Cow's pure milk, homogenized, double toned UHT processed milk bacteria free in a tamper proof tetra fino pack which keep the milk fresh for 60days without refrigeration until opened. At present the milk is being directly home delivered on request. Available in 500ml pack.
SLIM Cow's pure milk, homogenized, Skimmed. UHT processed milk bacteria free in a tamper proof tetra-fino pack which keep the milk fresh for 60 days without refrigeration until opened. Nandini Goodlife slim skimmed milk is 99.5% fat free. Available in 500ml Fino and in 200ml Bricks at premium stores across the state.
CURD
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Nandini Curd made from pure milk. It's thick and delicious. Giving you all the goodness of homemade curds. Available in 200gms and 500gms sachet. BUTTER MILK Nandini spiced Butter Milk is a refreshing health drink. It is made from quality curds and is blended with fresh green chillies, green coriander leaves, asafoetida and fresh ginger. Nandini spiced butter promotes health and easy digestion.
It is available in 200 ml packs and is priced at most competitive rates, so that it is affordable to all sections of people.
SHUBHAM Buffalo's milk, 100% pure pasteurized processed and packed hygienically. This milk has 5% fat and 9% SNF. Available in 500ml and 1ltr, packs.
GHEE A taste of purity. Nandini Ghee, made from pure butter. It is fresh and pure with a delicious flavour. Hygienically manufactured and packed in a special pack to retain the goodness of pure ghee. Shelf life of 6 months at ambient temperatures Available in 200ml, 500ml, 1000ml sachets, 5lts tins and 15.0 kg tins.
MYSORE PAK
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Fresh and tasty, Nandini Mysore Pak is made from quality Bengal Gram, Nandini Ghee and Sugar. It's a delicious way to relish a sweet moment. Available in 250gms, 500gms. PP container shrink packed to preserve freshness. Can be kept for 7 days. Advised to consume fresh to enjoy its excellent taste.
GULAB JAMOON MIX Great way to those soft and juicy jamoon treats at home! Nandini Gulab Jamoon Mix is made from Nandini skimmed milk powder, maida, soji and Nandini Special Grade Ghee. Available in 100gms and 200gms standy pouch with a five layer foil lamination. Shelf life of 6 months.
PEDA No matter what you are celebrating! Made from pure milk, Nandini Peda is a delicious treat for the family.
Store at room temperature approximately 7 days Available in 250gms pack containing 10 pieces each.
PANEER
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Pure and tasty dishes with Nandini Paneer! A fresh, nutritive product made by coagulating pure milk, it is an excellent source of milk protein. Nandini paneer is ideal for vegetarian dishes such as mutter paneer, sag paneer and various other dishes. Refrigerated storage is preferable. Available in 200gms pack, specially packed in a five layer film and vacuum packed to preserve its quality. Bulk packings are also available.
BUTTER Rich, smooth and delicious. Nandini Butter is made out of fresh pasturised cream. Rich taste, smooth texture and the rich purity of cow's milk makes any preparation a delicious treat. Available in 100gms (salted), 200gms and 500gms cartons both salted and unsalted, FLAVOURED MILK Sterilised flavoured milk, a nutritious and healthy drink and an all-season wholesome drink available in five different flavours pineapple, rose, badam, pista and natural orange. Apart from refreshing energy. Available in 200ml
ICE CREAM Nutritious, delicious creamy ice cream is manufactured at ISO 9002/HACCP certified Mother Dairy modern plant. The range includes Vanilla, Strawberry, Pineapple, Mango, Chocolate, Butter scotch, Kesar Pista, Orange & Mango Candies, Mango & Raspberry Dollies, Chocobar and Ball varieties Vanilla, Strawberry, Sundae. Available in 500ml and 1ltr packs.
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BADAM POWDER A delicious beverage with hot or cold milk. It can be used for kheer, kesaribath, desserts or ice cream. It's the goodness of Badam mixed with almond, edible starch, saffron, skimmed milk powder and cane sugar to give you the ideal Badam delight. Available in 200gms. PP boxes, cover shrink wrapped to offer better quality and also to prevent pilferage Shelf life of 6 months under room temperature. KHOVA Khova is prepared out of fresh milk. It is an ideal base to prepare delicious sweets at home like peda, Gulab Jamoon, Kalakand, Burfi, Gajar Halwa and the like. Nandini Khova gives you a high nutritive value with large quantities of muscle building proteins, bone forming minerals and energy giving fat and lactose.
To be kept under refrigeration Available in 200 gms vaccum packed in a special five layer pouch film Khova is also available in bulk pack for marriages and other functions
CHEESE Delicious Cheese, processed with utmost care to ensure the smooth and rich taste of pure cheese. It's highly nutritious an excellent source of milk proteins and a rich source of calcium. Need to be kept under refrigeration. Available in 100gms carton.
MILK POWDER
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Enjoy the taste of pure milk! Skimmed milk powder made from pure milk, processed and packed hygienically. Available in 50gms, 100gms, 200gms, 500gms,1kg & 25 kg pack.
CASHEW BURFI Prepared using quality Cashew nuts, Khova and Ghee. It leaves a lingering Cashew flavour in your mouth. Available in 250 gm in a P.P.Box, shrink wrapped to preserve its freshness. Shelf life : 12 days.
NANDINI BITE A unique sweet. Cocoa based. Nandini Bite is a three-in-one sweet prepared by using Mysorepak, Khova and dremed with Almond. Available in 25 gm Aluminium foil packing. Shelf life : 12 days. NANDINI BASAN LADOO It is a delicious indigenous product prepared from pure Ghee, Gramflour and sugar added with cashews. Available in 250 Gms pack containing 6 Pieces. Shelf life : 1 Month.
NANDINI SET CURDS
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NANDINI SET CURD, thick and highly nutritive curd is made from 3% Toned Milk with added imported bacterial cultures, filled into 200gm and 400gm cups and allowed to set into curds. Imported bacterial cultures constitute curd forming bacteria of high genetic abilities and release antimicrobial substances into curd imparting disease resistance to consumers( probiotic characteristic). The curd apart from therapeutic in nature has very high shelf-life and can be kept for 15 days in refrigerator without curds becoming sour. NANDINI SET CURD is competitively priced at Rs.7 per 200gm cup and at Rs.13 per 400gm cup. Shelf life : 15 days in refrigerator without curds becoming sour.
2.5. Area of operation:

The mother dairy KMF operates regionally. It operates throughout the Karnataka. Now the emphasis is given to extend the marketing territory apart from the Karnataka.
2.6. Ownership pattern:

Karnataka state government in association with national dairy development board funds the mother dairy, KMF. So, mainly Government of Karnataka is major owners for KMF, mother dairy, Yalahanka, and Bangalore.
2.7. Competitors information:

Though Nandini is one of the market leaders in milk products at Karnataka, through it has good name, it has so many competitors. As dairy industry is providing so many milk and milk products, naturally there is scope and demand for the products. So competitors exist in the market. The main competitors to the mother dairy are: SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 19
Heritage: Heritage is also engaged in producing of milk and its products like butter, curd, etc. Arogya Nilgiries: Nilgiries is also engaged in producing milk and curd. Dodla Gomata Milk way Swastik Nestle is also engaged in producing of milk and its products like butter, curd, etc.
2.8. Infrastructural facility:

Mother dairy provides good infrastructure facilities for the workers The long term Funds from the National Dairy Development Board and the Government of Karnataka and the Short term Funds from the Bank for development of activities. The organization has provided and maintained the infrasture like buildings, workspace. Process equipments and supporting services, (for communication) like Fax, E-mail, telephone facilities. Courier services, internet, automobiles for product delivery. Transportation facility for employees. Weighbridge Fueling point Generators Godown Dressing room Tanker parking Page 20
Technical and commercial consultants. Sub-contractors for tooling its related services, Security. Apart from this quality control division assess the condition of machineries, cleanliness, hygiene, processing parameters followed and also assess the testing facilities. At present there 7 bore wells in Mother Dairy.
2.9. Achievements

1955-Dairy in Karnataka was set up at Kodagu District on 08-01-1955. 1965-Biggest Dairy in Karnataka with 1.5 Lakh liters per day liquid Milk processing factory was set up in Bangalore. 1974-world Bank Aided Karnataka Dairy Development project was implemented 19-06-1974 to 30-09-1984.
1974-karnataka Dairy Development Corporation was born. 1975-First Speared team was positioned on 07-07-1975. 1976-First Registration of the union was on 23-11-1976. 1980-Karnataka Milk Product Ltd was established on 01-03-1980. 1982-First Milk Product Dairy started at Gejjalgere on Monday 12-06-1982. 1983-Corporate brand nameNANDINI was given on 13-02-1983
1. First cattle Feed Plant commissioned at Rajankunte on 21-03-1983. 2. Capacity Expanded from 100 MT on 01-06-1997. 1984- KDDC Transferred to KMF on 01-02-1984. 1984-Mother Dairy starts Functioning on 01-12-1984. 1985-Remaining govt. Dairies is transferred to KMF on 14-02-1985. 1987-OF-I1I implemented on 01-04-1987. 1988-Dairy at Bangalore, Gejjalagere. Dharwad, Belgam and Mangalore transferred to District Milk Unions on 10-09-1988. 1990-Milk supply at Kolkata Mother Dairy, through railway tankers from Mother Dairy, Blore.
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1991-Chilling and processing plant at Bijapur, Gulbarga. Bellary, shimoga and Kolar Transferred to District Milk Union on 01-08-1991.
1993-Commercial production and marketing of Nandini Flavored in September.
Milk launched
1994-1993 Milk procurement on single day crossed million kg levels in December 1986and average Milk procurement per day cross million kg levels 1992-1993. 1995-Liquid Milk scale crosses million liters per day on Feb. 1994. 1996-Varites of new Nandini Milk products launched. 1997-InstaIlation of LN2 Distribution system for Karnataka State. 2000-chiIling Center of 150 TLPD capacities at Hoskote started in Bangalore Union. 2002-Powder plant was established in October 2002. 2003-04 In November, ii will change its ISO 9001-2000 to 22000 standards (food safety management system). 2005- construction of new ice cream plant in mother dairy Bangalore 2006- Release of new tetra fine package for flavored milk & butter milk. 2007- Release of new homogeneous milk. 2008- Dairy weights. Nandini highest milk powder, ice cream launched, sundae, Corn kulphi Nandini milk. 2009-launch of good life variants in Cuttack Orissa, Tiruchi (Tamil nadu). 2010- 2011 Foundation of stone laying for Hosekote Dairy.
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2.10. Work flow

START - TANKERS ReceiveChilled Raw Milk in Cans Check for Can Seal LAB TES T LAB TES T Pour milk to the weighing bowl & record the weight of milk. Collect sample for testing. Check for Tanker Seal
Receive raw milk in tankers after weighing in Weigh Bridge. Record the weight of milk
Sensory Evaluation
Curd/ Adult
FAT/SNF/ ACIDITY
LAB TES T FAT/SNF/ ACIDITY
Plunging Sampling LAB TES T
Send Milk for Fat recovery after weighing and recording Filter and dump the Milk in dump tank
Pump the Milk through Chiller maintain the Milk temp.
Store the Raw Chilled Milk in insulated storage Tank RM silo.
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2.11. Future growth & prospects:

Establishment of new mega dairy of 6 lakh liters per day capacity expandable to 10 lakh liters per day at an outlay of Rs. 38.70 crores at Bangalore dairy. Establishment of 30 MT milk powder plant at mother dairy Yalahanka at an estimated cost of Rs. 22 crores. Expanding of ice cream plant from 3000 liters per day to 10000 liters per day and Construction of packing material stores at mother dairy. Bangalore are taken up by National Dairy Development Board. Expansion of frozen semen bank Hesarghatta with an investment of Rs. 2.68 crores. Expansion of Gubbi cattle feed plant from 100 MT to 200 MT per day at an outlay of Rs.8.80 crores. Expansion of Hassan cattle feed plant from 100 MT to 200 MT per day. Modernization of cattle feed plant. Rajankunte at an outlay of Rs. 4.4 crores. KMF corporate office complex at kormangala at an estimated cost of Rs. 2.9 crores. A 30 MT powder plant at mother dairy has been commissioned at a accost of Rs. 22.51crores.
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3. MCKINSEY'S 7S FRAME WORK TO MOTHER DAIRY
Soft Ss
Hard Ss
Theory of mckinsey's 7s models:

It's all very well devising strategy, but you have to implement if it it's to do any good. The seven Framework first appeared in 'The Art of Japanese Management" by Richard Pascal and Anthony Athos in 1981. They had been looking at how Japanese industry had been successful, at around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent .The Seven S model was born at a meeting of the four in 1978.It went on to appear in "In Search of Excellence'1 by Peter and Waterman, and was taken up as a basic tool by the global management consultancy McKinsey known as 7S Model. Managers, they said , need to take account of all seven of the factors to be sure of successful implementation of strategy -large or small .They are all interdependent, so failure to pay proper attentation to one of them , it can bring the others crashing down. The 7S Framework is useful way of checking that all the bases are covered.
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This model still works when the focus is on product marketing. However most developed economies have moved on with an ever-increasing focus on service business & therefore service marketing is to better represent the challenges. McKensy's developed a new frame work for analyzing and improving organizational effectiveness. HARDS Ss The 3Ss across the top of the model are described as" Hard Ss" Strategy: The direction and scope of company over the long term. Structure: The basic organizational structure of the company, its departments, reporting lines, areas of expertise and responsibility (and how they inter relate) System: Formal and informal procedures that govern everyday activity, covering everything from management information system. The organization is even enriched with its retail system, call Centre system, online system, etc. SOFT Ss: The 4Ss across the bottom of the model are less tangible, more cultural in nature, and were termed 'Soft Ss 'by McKinsey's. Skill; The capabilities and competencies that exist within the company. Shared values: The values and beliefs of the company. Ultimately they guide employees towards valued behavior Staff: the Companys people resources and how they are developed, trained and motivated. Styles: The leadership approach of top management and the company's overall operating approach.
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3.1. Structure:
ORGANISATION STRUCTUR DETAILS:
DIRECTOR
Manager HR & Administration Manager Production
Assistant Manager HR & Administration Deputy Manager Production
Training officers HR & Administration Assistant Managers Production
Assistant Manager Quality Control
Senior chemists
Chemists
Manager Marketing
Deputy Manager Marketing
Assistant Managers Marketing
Manager Finance
Deputy Manager Finance
Assistant Manager Finance
Manager Purchases
Assistant Manager Purchases
Purchase Officers
Manager Systems
Assistant Manager Systems
Computer Executive
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(l) Production department: Production can be defined as "an organized activity of transforming raw material into finished products". Production can also be defined as "production of goods, which satisfies some human needs and wants. Structure of Production Department
GENERAL MANAGER
PRODUCTION MANAGER [1] DY. MANAGER PRODUCTION [1]
ASSI. MANAGERS PRODUCTON [4]
TECHNICAL MANAGER OF PRODUCTION
SUPERVISORS [2]
TECHNICIANS [18]
HELPERS [3]
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Functions of production department: Improving volume of production Reducing rejection rate Minimizing rework rate Controlling idle machine and manpower hrs.
(2) Finance department: Finance is involved in drivers and challenging assignments. There are three board areas of financial decision-making, capital budgeting, capital structure, and working capital management. STRUCTURE OF FINANCE DEPARTMET
FINANCE MANAGER [1]
DY. FINANCE MANAGER [1]
ASST. FINANCE MANAGER [4] ASST. ACCOUNTANT [2]
SR STENOS [1] & SUPERVISORS [2]
HELPERS [3]
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Functions of finance department:
To formulate principles of accounting of all the departments according to act and in consultation with NDDB/board. To review the accounts of each department and advice wherever necessary. To ensure that books of accounts are maintained as required by law and submit for pre-audit and statutory audit. To ensure that guidelines are given for maintained and safe custody of documents on accounts. To mobile working capital and term loans required by the organization. To recommend for investments depending upon availability of funds and also to put up proposals received from the NDDB and others appropriately. To propose for payment of bills and claims on KMF upon certification by competent authorities. Inventory management. Preparation of final accounts.
Audit: There is pre and statutory audit that is basically at the end of financial year as the mother dairy is a cooperative department under the Govt. of Karnataka. The audit is done according to the rules and regulation of the state Govt. Double entry system of book keeping is followed by the finance department to calculate the depreciation, diminishing balance method of depreciation is followed. Mode of payment (dealer): 1. Cheque 2. Letter of credit 3. Demand draft
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(3) Marketing department: Mother dairy distributes loose milk to the consumers through bulk vending and FRP tanks at a rate which is 50 paisa less than the sachet milk for the same quality of 3.1% FAT and 8.5% SNF. From 1990 onwards it is also distributing toned milk in sachets part from full cream milk. In recent years it also started marketing butter, ghee, curds, buttermilk etc. Structure of marketing department: MARKETING MANAGER [1] DY.MARKETING MANAGER [1] ASST.MARKKTING MANAGER [2] MARKETING SUPERVISORS [3] SUPERVISOR MILK DISPACH [7]
SR.TYPIST [1] MARKETING ASSISTANT [5]
HELPERS [3]
(4) Human resource department: SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 31
It plays a very important role in the organization. It is primary concern is with human relationship in the organization. Thus, its main objects lay in the maintenance of relationship on a basis which considers the well-being of the individual. Company believes that its greater asset is human resource. In mother dairy 350 permanent employees are working. The success of any organization depends upon the quality of human resources. BENEFITS TO THE EMPLOYEES: Medical facilities are provided as per the law in force. &for unhealthy employees provide 50000 to 1.5 lakh Rs/- for heart patient. Conveyance allowances: who get 7000 salary they are eligible for conveyance allowance +5 liters cost of petrol. & above 15000 salary employees get 20 liters cost of petrol. & who are having cars they get 30 liters cost of petrol. Washing allowance 2 pair's uniform and shoes. 3 shift allowance House building advance, motor cycle advance, & solar advance. Who works in night shift one bun, coffee, tea will be provide. Canteen facilities: coffee 3 rupee, Tiffin 8 rupee, lunch 10 rupee for working employees. Home travel concession (HTC) for every two years. Free milk 250ml for employee every day. Free ghee 500ml for festivals like ugadhi and bonus of 9000 per year.
LEAVE: Earned leave (EL)-30 days per year. 10 days compensatory leave or 10 days half pay leave. 15 days casual leave Government holidays 1 and half month miscarriage leave
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Structure of human resource department: MANAGER ADMIN& HR [1]
ASST. MANAGERSADMIN & HR [7]
TRAINING OFFICERSADMIN & HR [7]
SUPERVISORS [4]
ASSISTANTS [5]
TYPIST [1]
HELPERS [3]
(5) Management information department:
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Presently mother dairy is having a system of all major transaction being carried out through its online computer system. The major areas covered are: The milk production and quality control system: the weightiest of milk tankers taken on Weight Bridge, which is inter forced with the online system. Quality tests fat % and SNF % area entered in QC menu. The shift wise receipt issue milk processing register products report are taken by entering the details in production menu to arrive to material balance. Milk marketing and distribution system: indenting for milk supply as per the retailers requisition quantity, production indent, route sheet printing, distribution menus. After the supply return entry, cheque entries carried to take the cheque statement, short/excess payment reports, sales reports and retailers" reports are taken. Financial accounting system: the general receipts are entered for cash/cheque receipts with GR printouts. Payment vouchers debit note, credit note, advances, bill payment, cheque bounces are entered. All financial reports petty cash, cash book, purchase day, R&P, trial balance, journal register, subsidiary ledgers, retailers ledger, income tax form-16, TDS certificates etic, monthly annual reports are taken. Integrated material management system. Payroll/attendance management. Engineering and production planning control.
Functions of MIS department:
Collection of data on daily basis from all the chilling centers and farm callers on milk procurement and form all the dairies on milk receipt sales and stock position. Preparation of weekly report to marketing section Preparation of monthly progress report with comparative market sales
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Structure of MIS department: MANAGER SYSTEMS [1]
ASST.MANAGER SYSTEMS [1]
EXECUTIVES COMPUTER [2]
ASST.EXECUTIVES SYSTEMS [2]
ASST.SYSTEMS |[3]
HELPERS [3]
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(6) Purchase department: Functions:
To organize and make centralized purchase for mother dairy To obtain annual requirements of the materials coming under the purview of CPC
from all the chilling centers. Once the actually quantity to be purchased is arrived at necessary tenders to be called by giving wide publicity in newspapers.
Once the tenders are received, and tabulated these are to be placed before the
purchase advisory committee for consideration.
Convening purchase advisory committee meeting from time to time. Monitoring the suppliers of all CPC items to mother dairy if they face any problem in
procuring the material. Structure of purchase department: MANAGER PURCHASES [1]
ASST.MANAGER PURCHASE [2]
PURCHASE OFFICER [2]
SUPERVISORS [2] & SR.TYPIST [2]
ASSISTANT PURCHASE [6]
TELEPHONE OPERATORS [3]
HELPERS [3]
3.2. Strategy
SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 36
The direction and scope of the company over a long term. Pricing strategy In this company prices of the products are fixed by taking the cost of the raw materials, cost of packing material, cost of overhead expenses, profit margin etc are taken in to the account, while fixing the price of the product. For the purpose of fixing the prices the detailed information is collected with the help of cost consultant, with advice of cost consultants prices of the products are fixed. Promotion strategy Mother dairy on its own does not have any authority to form policies relating to the promotional activities. It follows the major order passed by Karnataka Milk Federation and government of Karnataka. It is under taking extensive promotional activities for increasing the sales. Discounts If the agent sells more than 50 crates of milk, they will get one packet of milk at free of cost. If retailers cross the minimum sales then they will get fixed quantity of products as free of cost. Development of intermediates and Procurement technologies of milk. bulk milk products order using a variety of
Development of cattle field plants of 100 TPD capacities, each and one plant of 200 TPD Capacities with mineral mixture production facility on one unit. Providing assured and remunerative market for the milk produced by the farmers. Improving the quality status of milk and their derivatives to urban consumers.
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3.3. System
Formal and informal procedures that governs day to day activities, all the formal and informal procedures that make organization work or system it uses to be successful KMF as an organization, Which is systematic in doing its day to day work and any work for that matter is does things in very systematic and sophisticated manner. This is evident from the fact that KMF has well managed mix, training system and over all administration. In this company order execution system is followed for the distribution product. Under this company order received from the customer are send to the export department for execution. Milk procurement procedure: Indent is raised by the user department and is registered at stores after verifying the availability of stock at stores. After registration, the indent is forwarded to purchase wing for procurement. At the time of registration of indent if stock is available it is issued the user department and the indent is cancelled. On receipt of indent the purchase being lends enquires to various suppliers who normally supply the milk and milk products. Then these suppliers submitted their offers. After receiving the offers, a comparative statement is made forwarded to the general manager (purchase) for recommendations; the general manager (purchase) chooses a most suitable offer for placement of purchase order. After the approval technical department, account section and director then purchase order is placed with the suppliers. On the receipt of purchase order the supplier sends the milk and milk products along with bills. The products are received at the reception section of the stores and are verified against the specification laid in purchase order. Then goods inspection note is prepared and forwarded to the purchase department for inspection of milk and milk products supplied. Then the general manager (purchase) inspects the material with quality experts at stores. Material acceptance\ rejection depends on the quality of products. If the materials accepted, goods receipt note is prepared and forwarded to accounts section and the material is stored in specified location. On rejection materials reject note is prepared and forwarded to accounts section for making payment\ to give information to the suppliers about the rejection. Whenever general receipt note is prepared the stock of the particular items gets update in computer. The rejected goods are returned to the suppliers. After materials required for SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 38
production is approved by quality control department, then materials are supplied to the production department. The production department will produce the products and then the finished products are also approved by the quality control department. The quality control department will check the products and records and then issue quality assurance certificate. So, quality assurance department is the major department in this company.
3.4. Style
Leadership style The leadership approach of top management and the companys overall operating approach. The organization follows authoritative leadership approach. Mother dairy has more than 20 years of History it has its own innovation style of products and services the mother dairy itself try to meet the emerging competition by making use of technology to improve the customer service. It is participative organization, in this organization all the departments head will conduct a meeting on every week to discuss the activities of the company and they prepare a report and submit to the director, in turn director will conduct a meeting of manager of all the departments at the end of every week and he prepare a report of same and submit to the managing director for proper consideration. This is the way of participation of each and every official for the smooth and efficient running up of a company. This participation will solve the problems of a company very easily.
3.5. Staff
In this organization, the staff members are well co-operative each other, and well experienced employees with knowledge regarding their work Duties and responsibilities of staff
To report him/ her to duty at the place to which he/she posted. To undergo the prescribed probation under the KMF for a period of two years and undergo such training and for a period has may be arranged for him/her and acquit him/her self creditably in the training imported to him/her.
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To obey and abide the rules, regulations, service conditions and standing orders which the KMF may adopt, prescribe, frame are issue from time to time to govern its employees.
Total staff: SL.NO. PARTICULARS NUMBERS SALARY / MONTH 1 2 3 Permanent Contract-Labours Security Contract 320 234 28 3500000.00 805000.00 102000.00
3.6. Skill
The capabilities and competencies that exist within company. The skilled and competent person has been kept for updated to meet the requirement of customers keeping in view the changes in environment. Various training and development programs and seminars from experts etc. are arranged from time to time to understand the latest technology in the production. Mother dairy is using both on the job training and off the job training methods. On the job Training Methods:Under this method, the individual is placed on a regular job and learns under the supervision of guidance of the instructor. For this method of training, they are inviting experts from various training institutions. This type of training will be conducted once in three months/six months/a year. On the job training methods adopted are as follows,
Coaching: SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 40
The trainee is placed under a particular supervisor who functions as a coach in training the individual so as to enable him to fulfill the organizational requirements. For this purpose, they invite experts from various institutions like national Dairy Development Board, Dairy Science College, sometimes top managers of the organizations etc. coaching programme is on: Computer basics Trainers training programs.
Job instructions: This type of training is conducted when new employees are recuited. Under this method the experts or the supervisor explains to the trainee the way of doing the job and allow him to do the job. For example:- ISO 9000 quality system awareness program, employees who are recruited organization, composition of the board, financial status of the company, product mix, rules also have to undergo general induction training which covers the history of the and the regulation of the company and the specific duties expected out of the newly recruited employees . Off the job Training Methods: Under this method of training trainee is separated from the job situation. Here employee can place his entire concentration to learn rather than spending time in performing job. Vestibule training: In this method, actual work conditions are simulated in a class room. Mother dairy sends its employees to national dairy development board (NDDB) for technical training. This type of training is commonly used for training individuals for technical and clerical job. Employees are provided training on efficient operation and maintenance of boiler, electrical operation training etc.
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Lecture method: Under this method, the individual give seminar on selected topics, supervisory personnel, managers are given seminars in different institutions like NDDB, Anand, zero defects consulting services, Bangalore etc. seminars are given on time management, human resources development programme. Emphasis has been given on training programs on energy conservation and marketing activities.
3.7. Shared values

The values and beliefs of the company ultimately they guide employees towards valued behavior. Shared values are providing quality milk to urban consumers and providing assured and remunerative market for the milk produced by farm members the top management peoples like directors and various departmental heads specialized in various aspects such as operations, finance etc. it is totally free firm as it will not produce any effluents . Since the internal operations are being covered by HACCP.the waste residues are considerable brought down and left over waste discharges are sufficient treated as per the requirements of water air pollution control act. Mother dairy has got its own efficient treatment plant .the treated effluent quality parameters like BOD and COD are well within the limits prescribed and a part of the treated effluent is used in gardening etc.
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4. SWOT ANALYSIS OF THE COMPANY
A SWOT analysis stands for strengths, weakness, opportunities, and threats and is a simple and powerful way to analyze your companies' present marketing situation.
4.1. STRENGTHS
Every organization has some strength; whatever these strengths are adequate is an issue for the analysis.
It is located in place where good infrastructure is available. Each department in the organization is very co-ordinative Highly satisfied consumers Mother dairy is following latest technology of milk processing. Milk producers elect their own administrative body ISO 9001 -2000 certificate. Reputation in the market. Fully computerized documentation process.
SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 43
4.2. WEAKNESS
It is the weak of the organization related to the internal environment which avoiding the companies from achieving its goals. As it is government organization employee productivity is less. It is lacking with enough authority to take decisions. Lack of specialization in top-level management.
4.3. OPPORTUNITIES
All organizations have some opportunities that they can gain from these could range from diversification to date operations. Identifying hidden opportunity is the mark of anan astute analyst.
Different varieties of milk for different categories of people. Tapping loose milk sales. It has got good infrastructure to expand production capacity Mother dairy is concerning only on local market it has got opportunity to enter
into other markets also.
4.4. THREATS
No organization in threats; these could be internal, such as following productivity. Competition from private vendors: - in the present situation private milk vendors are occupying the pride place in the dairy industries.
Wide brand competition. Workers inefficiency, Increased local loose milk sales. .
Threat due to entrance of the private firms into the milk processing.
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5. ANALYSIS OF FINANCIAL STATEMENT

5.1. Manufacturing, trading account for the year 2011
SL.NO PARTICULARS CURRENT YEAR 2011 PREVIOUS YEAR 2010
EXPENDITURE: 1 2 3 4 5 6 Opening stock Purchases Inter unit purchases Processing & manufacturing expenses Procurement transportation Direct staff expenses- 80% Gross profit transfer to profit & loss A/c TOTAL INCOMES: 3,32,0094,888.26 2,51,41,29,192.74 6,26,89,509.43 2,64,67,96,870.30 13,26,27,874.00 10,16,48,838.19 4,08,85,484.09 8,56,38,416.52 24,98,07,898.73 11,51,03,287.80 1,87,24,41,851.12 8,09,44,052.00 9,42,65,285.15 2,63,49,571.28 7,39,29,372.13 25,10,95,773.26
7 8 9 10
Sales Inter unit sales Income from conversion charges Closing stock Gross loss transfer to profit & loss A/c TOTAL
2,73,20,62,682.25 30,84,21,407.70 13,35,79,036.00 14,60,31,762.31
2,07,08,38,139.21 24,48,36,384.33 13,57,65,162.77 6,26,89,506.43
3,32,0094,888.26
2,51,41,29,192.74 Page 45
5.2. Profit and loss account for the year 2011

EXPENDITURE: Gross loss B/F 1 2 3 4 5 6 7 Indirect staff expenses-20% Administration expenses Taxes Selling & distribution expenses Interest and bank charges Loss on sale /revaluation of assets Depreciation on fixed assets NET PROFIT TOTAL INCOMES: 2,14,09,604.13 1,83,09,015.74 48,35,476.40 6,33,08,892.80 1,14,74,819.10 12,48,659.11 3,50,12,520.95 10,70,04,864.60 26,26,03,852.83 1,84,82,343.03 2,80,64,913.31 48,24,341.00 5,36,44,977.66 88,93,521.25 0.00 3,34,92,599.58 11,69,68,509.53 26,43,71,205.36
8 9 10 11 12
Gross profit B/F Other income Interest on deposit & advance Profit on sale/revaluation of assets Income depreciation NET LOSS
24,98,07,898.73 12,29,77,90.10 4,98,164.00 00.00 00.00
25,10,95,773.26 89,97,025.82 6,51,472.71 11,95,592.42 24,31,341.15
TOTAL
26,26,03,852.83
26,43,71,205.36
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5.3. Balance sheet as on 31st march 2011

SOURCES OF FUNDS: 1 2 3 4 Share Capital Reserves and Surplus Loans (secured & unsecured) Profit & Loss Account (To be transferred to KMF C.O.) 5 Current Liability & Provisions TOTAL APPLICATION OF FUNDS: 46,41,99,032.19 70,93,91,396.79 40,18,90,039.90 65,16,17,674.43 0.00 0.00 13,81,87,500.00 10,70,04,864.60 0.00 0.00 13,27,59,125.00 11,68,69,509.53
Fixed Assets (net block)
50,07,45,830.55
51,04,83,753.74
7 8
Investments Current Assets, Loans & Advances a. Inventory b. Sundry Debtors c. Cash & Bank Balance d. Loans & Advances TOTAL
0.00
0.00
14,60,31,762.31 2,74,05,938.27 2,18,76,381.51 1,33,31,484.15 70,93,91,396.79
6,26,89,506.43 2,17,95,075.25 3,90,60,760.13 1,75,88,578.88 65,16,17,674.43 Page 47
5.4. Ratio analysis

Meaning of ratio: A Ratio is a simple arithmetical expression of his relationship of one number to another. It may be defined as the indicated quotient of two mathematical expressions. According to Accountants Handbook by Wixon, Kell and Bedford, a ratio is an expression of the quantitative relationship between two numbers According to Koehler ratio is the relation, of the amount, a, to another, b, expressed as the ratio or as a simple fraction, integer, decimal, fraction or percentage. Ratio analysis is a tool to find out the liquidity and solvency position of the company so as to determine the companys solvency and liquidity position. Current Ratio The current ratio is the ratio of total current assets to total current liabilities. It is calculated by dividing current assets by the current liabilities. The current ratio is a measure of the firms short-term solvency. It indicates the availability of current assets in rupees for every 1 rupee of current liability. The current ratio is calculated by dividing current assets by current liability.
Current assets include cash and those assets, which can be converted into cash within a year such as marketable securities, debtors and inventories. Current liabilities include creditors, bills payable, accrued expenses, short-term loans, Income tax liability and long-term debts ac ruing in current year Current Ratio = Current assets/Current liabilities For 2010:- 123545341.80/40,18,90,039.90 = 0.30 For 2011:- 19,53,14,082.10/46,41,99,032.19 = 0.42 Interpretation: Short- term solvency position of the firm improved over a period of 1 year i.e. the current ratio for 2011 is 0.42 where as in 2010 it is 0.30 which has increased in 2011.
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Return on capital employed (ROCE): It is a test of overall profitability of a concern. It is the ratio which relates the return or profit of a concern to its capital investment or capital employed. ROCE = (Profit after Tax/Capital Employed) * 100 For 2010 :- (11, 69, 68,509.53/13, 27, 59,125.00) * 100 = 88.10 For 2011:- (10, 70, 04,864.60/13, 81, 87,500.00) * 100 = 77.43 Interpretation: ROCE of 2010 is 88.10 and 2011 is 77.43 which has been decreased from 2010 to 2011. Net profit ratio Net profit ratio is the ratio of net profit to sales.Net profit means the final profit left after meeting all expenses.it other words, it is the excess of total revenues over total expenses,it means the final profit available for the owners. Net profit ratio= (Net profit /sales)*100 For 2010:-(11,69,68,509.53/2,67,08,38,139.21)*100=4.37% For 2011:-(10,70,04,864.60/2,73,20,62,682.65)*100=3.91 Interpretation:A high net profit ratio in 2010is4.37% indicates that the profitability of the concern is good. On the other hand, a low net profit ratio in 2011is 3.91%.
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6. LEARNING EXPERIENCE
It's my pleasure to first thank the VTU Belgaum for including the summer project as part of academics. It was my experience doing my summer project in Mother Dairy "Yelahanka (unit of KMF), which is one among the 'MOTHER' federation for milk products. From the day 1 started my project and till I finished the project I have learnt various things, which I was not aware. I had a perception that KMF being a government Organization could not give the necessary information. Which I was in need of, however, on the first day itself I came to know that my perception was entirely wrong. I studied too many books and journals regarding Mother Dairy. When I started my project in Mother Dairy (unit of KMF) i came to know how the things were implemented. Working on the project, It made me to understand the actual working environment of an Organization and financial strengths like the fund management, goal towards to give better milk products to the customers at less prices compare to the other branded products through that how they are managing the financial stability in the organization. This project has given me an opportunity to analyze my skills, which is bound to influence my carrier in the future. I was very happy with all the employees in the organization because every individual co-operated a lot with us. Whatever information I was in need of, I could collect very easily with them. They used to stop their work for a while and tried to give the full information, which 1 was in need of; Our External Guide Mr. C.p.reddy was very helpful for us. He prepared a schedule for the period. He used to give me various departmental information. The financial study of the mother dairy helps me to analyses of the financial statements towards to find the financial stability of the organization. The statement revels that the company has substantial financial growth from three previous years which is in the profit position.
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1. GENERAL INTRODUCTION
Promotion: Promotion means to push forward or to advance an idea an idea in such a way to gain its acceptance and approval. To the target consumer, it is essential to communicate, persuade and motivate them for performing these tastes another component of marketing mix namely promotion mix is employed. Promotion is basically a communication process. This has become necessary, as the process of selling is more complex today to continue to start purchasing the firm's product or service at the same price. Promotion: Promotion is the process of marketing communication involving information and influence. Broadly speaking promotion means to push forward of to advance in such a way as to gain its acceptance and approval. Brink and Kelly have defined promotion as the co-ordination of all seller initiated efforts to set up channel of information and persuasion to facilitate the sales or product service or the acceptance of an idea ". Sales promotion: According to American marketing Association, Sales promotions are those activities other than personal selling, advertising and public relations, which stimulate consumer purchasing and dealer effectiveness, such as display shows and exhibition, demonstration and various nonrecurring and selling efforts not in the ordinary routine. "Sales promotion is short term incentive to encourage purchase or sales of a product or service ". Mother Dairy marketing functions are normally carried by K.M.F. They are following all the media's like print and as well as electronic media. Being a government company they don't advertise aggressively as private companies are doing. And those are as under mentioned.
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1) PAPERS AND MAGAZINES. The company gives advertisements from time to time local newspapers and specially when considering to regional language they prefer mostly Kannada papers and magazines.
o o o o
Prajavani Vijay Karnataka Deccan Herald Times of India
Almost all Newspapers are covered to give advertisings. Because K.M.F. spends most of its advertising budget on print media because it is cheap and as well as it is a Effective media to reach each and every customer. They are also giving advertisements in Telugu and as well as in Tamil newspapers because of the southern region and to consider all the customers. 2) TELEVISION The advertisements of Mother Dairy products are normally done in selected channels because they not spend more in electronic media's.
o o
In all Door Darshan channels, UdayaTV, E-TV, Z-Kannada etc. In this way they are concentrating on most Kannada TV channels and Door Darshan channels. They are spending 20% to 30% on electronic media from their advertising budget.
3) RADIO Mother Dairy advertises in All India Radio and recently they have started giving advertisements in F.M.91, F.M.92.70 4) HORDINGS Hoardings of NANDINI products can be seen in all the big cities of the country or throughout the Karnataka and those hoardings situating in Railway stations, Bus stations, Market places and busy area of cities. These hoardings can be watched by the citizens, which automatically advertise the product. It is important because hoardings act as silent sales person, which makes people to aware. SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 52
Some other strategies K.M.F. has given contract to Godrej for advertisements because of their popularity and their good will for the company to promote the sales. These are the sales promotion strategies adopted by Mother Dairy to promote the sales. Because of these effective strategies the company has captured the market share and still it is doing well in today's global market, because of the good quality and taste. So even though it is a Government company it competing effectively with its competitors. Seasonal and festival offers In the time of festivals as Diwali and Ramzan, company will give discounts and as well as good offer on bulk purchase to promote the sales. So some are the promotional strategies mentioned above are followed by Mother Dairy. Some of the promotion tools are: 1. Consumer promotion tools. 2. Trade promotion tools. 3. Business promotion tools. 1. Consumer promotion tools:

Coupons Premium offers Samples Price packs Free goods Dealer's Gift Point of purchase Discount Buying allowance Dealer's sales content
2. Trade promotion tools:

3. Business promotion tools: Trade shows and conventions Sales contest
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CONSUMER BEHAVIOUR: Meaning: The study of consumer behavior is the study of how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. It includes the study of what they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it. Definition: According to Belch and Belch consumer behavior is the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires.
1.1 STATEMENT OF THE PROBLEM:

In todays competitive world, any company cannot sell their products without any effective promotional strategies. The company has to communicate effectively with the customers and it will help to promote. Promotion mix is set of tools includes advertising, publicity, personal selling and promotion. It is must for every company to adopt the above-mentioned tools in order to increase sales. Sales promotion acts as bridge between advertising and personal selling. It makes advertising more effective and helps the company to sell more effectively. In dairy industry this company is keep adding new product varieties. Therefore every company is adopting the policy of sales promotion to increase the sales of its products. When every company is adopting the policy of sales promotion, Mother Dairy cannot sales its products on the basis of only quality and price. From the past few years, sales of Mother Dairy have been decreasing despite of companys efforts to increase the sales of KMF. Mother Dairy being a government concern sufficient amount of funds is not provided for promotional activities. Trade schemes are the only tools of the sales promotion. Hence this study was concerned to study the effectiveness of the promotion activities carried out by the Mother Dairy in the recent past.
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1.2. OBJECTIVES OF THE STUDY:

To study the influence of advertising on consumer decision making towards Nandini milk and its products. To analyze the perception of customers towards the various features of the products offered by the firm. To analyze the promotional activities which influence the consumers to purchase the nandini products. To provide suitable measures for the firm to make the promotional strategies effective.
1.3. SCOPE OF THE STUDY:

As consumer use the product, their needs and preferences, usage habits, post purchase actions gave a wide and large scope for this study. The influence of advertising on consumer behavior study helps the marketing manager, to increase the sales and ultimately capturing a large market share and competitors. This study could help to know about the influence of advertisement on consumer behavior towards nandini milk and its products.
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1.4. RESEARCH METHODOLOGY RESEARCH DESIGN:
Research design adopted for this study is descriptive by nature. The frame work for a study that guides the collection and analysis of the data required. Opinion of the consumers was collected through a questionnaire, 100 respondents has taken part. Research design is a catalogue of various phase and facts relating to formulating of efforts. It is the arrangement of the conditions for collections and analysis of data in such manner that aims to combine relevance to the research purpose with economy procedure. METHODS OF DATA COLLECTION
Data source is a key in marketing research. The design of data collection method is the back bone of research design. Normally the sources data are classified in two types:

Primary data Secondary data Primary data: The primary data is the first hand data collected from the field and therefore
consists of original information gathered for a specific purpose. It is relatively expensive, laborious and time consuming. But it assures a greater accuracy and reliability. Primary data is collected with the help of structured questionnaires. The questionnaires included 100 questions. For this research work the researcher used both open ended and close ended questions. An open ended question allows the respondents to answer them in their own wards. These questions reveal more information as they do not constrain respondents to answer. They are specially used in exploratory research. The close ended questions pre specify all the possible answers. These questions provide answers that are easier to interpret and tabulate. The questions should be simple, direct and it should create interest among the respondents. SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 56
Secondary data:
Secondary data is collected through company literature, books, magazines, newspapers and internet. For the purpose of research, the secondary data collected through union manuals, union project reports, relevant documents, by referring journals and other sources. SAMPLING The sampling should have meaningful of how large a sample we wish to draw from the population in order to fulfill the research objectives. It is determination in advance of how many respondents is to be included as the sample. More of sample size less of sampling errors. The sampling size is100 respondents for this research work. SAMPLING PROCEDURE Since it is neither possible nor necessary to construct the whole population from seeking their answers, the researchers usually choose a sample of response from the universal. Sample is small number of items chosen at random basis from a large number of items. For this study random sampling method was used. SAMPLING AREA The needed information collected from part of the Yelahanka area in Bangalore city. Random sampling is used because it gives each element an equal and independent chance of being selected. (Equal chance has been given to consumers for selection) RESEARCH INSTRUMENTS The most popular research instruments used for collecting data was questionnaire. For an investigation purpose from the questionnaire the list of questions was asked to the respondents. It also contains suitable space where the answer can be recorded. PROCESSING AND ANALYSIS: The data collected were coded and tabulated; tables were prepared and analyzed. SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 57
Analysis was carried out by mainly through the use of percentage, which represents some rate of proportion. 1.5. LIMITATIONS OF THE STUDY The study differed by several limitations some of them can be viewed as major limitation to the study while other were minor ones. Some major limitations are as follows: The most important limitation of the time constraints, the study of this nature requires more time for better results. The company does not leak out some necessary data information Some of retailers and consumers did not reply the questionnaires fully and effectively. This also affected my study.
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1.6. STATISTICAL TOOLS USED

A) Percentage analysis method The analysis is done by using the simple percentage analysis. Percentage analysis is the method to represent raw streams of data as a percentage for better understanding of collection of data. Percentages refer to a special kind of ratio. Percentages are used in making comparison between two or more series of data. Percentages are used to describe relationships between the series of data. Finding the relative differences becomes easier through percentages. It is expressed as
Percentage
B) Chi square method Chi-square is a statistical test commonly used to compare observed data with data we would expect to obtain according to a specific hypothesis. For example, if, according to Mendel's laws, you expected 10 of 20 offspring from a cross to be male and the actual observed number was 8 males, then you might want to know about the "goodness to fit" between the observed and expected. Were the deviations (differences between observed and expected) the result of chance, or were they due to other factors. How much deviation can occur before you, the investigator, must conclude that something other than chance is at work, causing the observed to differ from the expected. The chi-square test is always testing what scientists call the null hypothesis, which states that there is no significant difference between the expected and observed result.
Formula for Calculating Chi-Square Test:

Chi- Square = (O-E) ^2/E O= Observed Frequency E=Expected Frequency
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2. DATA ANALYSIS AND INTERPRETATION

TABLE 2. 1. TABLE SHOWING GENDER OF THE RESPONDENTS SL.NO 1 2 Gender Male Female Total No. of respondents 30 70 100 Percentage (%) 30 70 100
ANALYSIS: From the above table shows that 30 percent of the respondents are male and 70 percent of them are female. CHART 2.1. CHART SHOWING THE GENDER OF RESPONDENTS
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INTERPRETATION: From the survey it is observed that 70 percent of respondents are Female and 30 percent are Male, it shows that majority of female respondents are using Nandini products. TABLE 2.2. TABLE SHOWING THE AGE GROUP OF RESPONDENTS SL.NO 1 2 3 4 5 6 ANALYSIS: From the above table we can observe that 10% of respondents belongs to the age group of above 55 years, 4 percent of respondents belongs to the age group of 45 55 years, 26 percent of respondents belongs to the age group of 35 45 years, 37 percent of respondents belongs to the age group of 25 35 years, 17 percent of respondents belongs to the age group of 18 25 years, 6 percent of respondents belongs to the age group of above 18 years. CHART 2.2. CHART SHOWING THE AGE GROUP OF RESPONDENTS Age group (years) Above 18 18 - 25 25 - 35 35 - 45 45 55 55 above Total No. of respondents 06 17 37 26 04 10 100 Percentage (%) 06 17 37 26 04 10 100
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INTERPRETATION: From the above graph and analysis we find that majority of 37 percent of respondents belongs to the age group of 25 35 years. TABLE 2.3. TABLE SHOWING THE OCCUPATION OF THE RESPONDENTS SL.NO 1 2 3 4 5 Occupation Student Self employed Business Profession Others Total ANALYSIS: From the above table we can observe that 10 percent of respondents belongs to students, 26 percent of respondents belongs to self-employed, 34 percent to any other groups. CHART 2. 3. CHART SHOWING THE OCCUPATION OF THE RESPONDENTS respondents belongs to business, 20 percent of respondents belongs to profession, 10 percent of respondents belongs No. of respondents 10 26 34 20 10 100 Percentage (%) 10 26 34 20 10 100
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INTERPRETATION: From the above analysis we can find that 34 percent of respondents belong to business group. TABLE 2. 4. TABLE SHOWING THE MONTHLY INCOME OF THE RESPONDENTS SL.NO 1 2 3 4 Monthly income Below 10,000 10,000 15,000 15,000 20,000 Above 20,000 Total ANALYSIS: It has been observed that 16 percent of the respondents family income is below Rs. 10,000, 38 percent of the respondents family income is Rs10,000- 15,000, 36 percent of the respondents family income is Rs 15,000- 20,000 and 10 percent of the respondents family Income is above Rs 20,000. CHART 2. 4. CHART SHOWING THE MONTHLY INCOME OF THE RESPONDENTS No. of respondents 16 38 36 10 100 Percentage (%) 16 38 36 10 100
INTERPRETATION: SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 63
From the above graph 16 percent of respondents were monthly income is below Rs 10,000, 38 percent are between Rs10,000 15,000, 36 percent are between Rs. 15,000 20,000 and 10 percent are above Rs20,000 income. TABLE 2.5. TABLE SHOWING THE RESPONDENTS WHO HAS GONE THROUGH NANDINI PRODUCTS ADVERTISEMENTS ANALYSIS: Respondents gone SL.NO 1 2 through the advertisements Yes No Total 96 04 100 96 04 100 No. of respondents Percentage (%)
From the above table we can see that 96 percent of respondents said that they were gone through the advertisements of nandini products, where 4 percent of them were not gone through the advertisements of the nandini products. CHART 2.5. CHART SHOWING THE RESPONDENTS WHO HAS GONE THROUGH NANDINI PRODUCTS ADVERTISEMENTS
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INTERPRETATION: From the table and analysis we can find that majority of 96 percent respondents says that they have gone through the advertisements of nandini products. TABLE 2. 6. TABLE SHOWING THE INFLUENCE OF NANDINI PRODUCTS ADVERTISEMENTS ON THE BELOW MENTIONED FACTORS SL.NO 1 2 Influence Buy the milk product Recommend the milk product to others to buy Total No. of respondents 29 71 100 Percentage (%) 29 71 100
ANALYSIS; From the above table we can observe that advertisement has influenced the 29 percent of respondents to buy the milk products and 71 percent of the respondents recommend the milk product to others to buy. CHART 2.6. CHART SHOWING THE NANDINI PRODUCTS ADVERTISEMENT WHICH INFLUNCED THE RESPONDENTS
29
Buy the milk product Recommend the milk product to others to buy
71
INTERPRETATION:
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From the above chart we find that majority of 71 percent of respondents recommend the milk product to others to buy in influence to advertisement.
TABLE 2.7.
THE TABLE SHOWING THE RESPONSE FOR THE QUESTION-DO YOU THINK PRODUCT OF NANDINI HAVING GOOD MARKET BECAUSE OF ITS PROMOTIONAL ACTIVITIES
SL.NO 1 2
Market position Yes No Total
No. of respondents 86 14 100
Percentage (%) 86 14 100
ANALYSIS: From the above table we can say that 86 percent respondents felt that the nandini product is having good market because of its promotional activities, where 14% of them felt that it is not so. CHART 2.7. CHART SHOWING THE RESPONSE FOR THE QUESTION-DO YOU THINK PRODUCT OF NANDINI HAVING GOOD MARKET BECAUSE OF ITS PROMOTIONAL ACTIVITIES
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INTERPRETATION: From the table and analysis we find that majority of 86 percent respondents says that its promotional activities the nandinis market position is good. TABLE 2.8. THE TABLE SHOWING THE RESPONSE FOR THE QUESTION LEVEL OF NANDINI PRODUCTS ARE OVER PRICED SL.NO 1 2 Price level Yes No Total ANALYSIS: From the above table we can observe that 78 percent of respondents says that nandini products are overpriced and 22 percent of them says that it is not overpriced. CHART 2. .8 CHART SHOWING THE RESPONSE FOR THE QUESTION THE PRICE LEVEL OF NANDINI PRODUCTS ARE OVER PRICED SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 67 No. of respondents 78 22 100 Percentage (%) 78 22 100 THE PRICE
INTERPRETATION: From the above chart we find the majority of 78 percent respondents felt that nandini products are overpriced. TABLE2. 9. TABLE SHOWING THE NUMBER OF RESPONDENTS WHO PURCHASED NANDINI PRODUCTS DUE TO THE BELOW MENTAIOND PROMOTIONAL SCHEMES SL.NO 1 2 3 4 Promotional schemes Coupons Premium offers Price offers Others Total ANALYSIS: From the above table we can observe that 22 percent of the respondents prefer nandini products because of coupons and 31 percent of the respondents prefer for its premium offers, No. of respondents 22 31 42 5 100 Percentage (%) 22 31 42 5 100
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and 42 percent of respondents prefer because of price offers and 5 percent of respondents prefers for other reasons. CHART 2.9. CHART SHOWING THE NUMBER OF RESPONDENTS WHO PURCHASED NANDINI PRODUCTS DUE TO ITS PROMOTIONAL SCHEMES
INTERPRETATION: From the above chart we find that majority of 42 percent of respondents prefer nandini products because like price offers. TABLE 2.10. TABLE SHOWING RESPONDENTS OPINION ON PREFERING CELEBRITIES ON THE ADVERTISIMENTS OF NANDINI PRODUCTS SL.NO 1 2 Celebrities influence on sales Yes No Total ANALYSIS: From the above table we can observe that 66 percent of respondents says that the celebrities in advertisements influenced them to buy the nandini products and 34 percent of respondents says that it is not. No. of respondents 66 34 100 Percentage (%) 66 34 100
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CHART 2. 10. CHART SHOWING THE RESPONDENTS OPINION ON PREFERING CELEBRITIES ON THE ADVERTISIMENTS OF NANDINI PRODUCTS
INTERPRETATION: From the above chart we find that majority of i.e. 66 percent of respondents says that they are influenced by the celebrities of advertisements. TABLE 2. 11. TABLE SHOWING THE DIFFERENT COMPANIES ADVERTISEMENTS FREQUENCY SL.NO 1 2 3 4 Advertisement Amul Nandini Heritage others Total ANALYSIS: No. of respondents 22 58 12 08 100 Percentage (%) 22 58 12 08 100
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From the above table we can observe that 22 percent of respondents says that frequency of Amuls advertisements are very high, and 58 percent of respondents says that it is Nandini,and 12 percent of respondents says that is Heritage . CHART 2.11. CHART SHOWING THE DIFFERENT COMPANIES ADVERTISEMENTS FREQUENCY
INTERPRETATION: From the above chart we find that 58 percent of the respondents found Nandini product advertisements frequency is good. TABLE 2.12. TABLE SHOWING THE RESPONDENTS LIKING OF THE NANDINI PRODUCTS WHICH HAS BEEN ADVERTISED.
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SL.NO 1 2 3 4 5
Products Milk Curd Sweets Ice creams Other products Total
No. of respondents 18 14 42 18 08 100
Percentage (%) 18 14 42 18 08 100
ANALYSIS: From the above table we can observe that 18 percent of respondents like milk, 14 percent of respondents like curd, 42 percent of respondents like sweets, 18 percent of respondents like ice creams and 8 percent of respondents like other products. CHART.2.12. CHART SHOWING THE RESPONDENTS LIKE THE NANDINI PRODUCTS WHICH HAS BEEN ADVERTISED
INTERPRETTION: From the above chart we can find that majority of respondents ie 42 percent of them like Nandini sweets because of the advertisements. TABLE 2. 13. TABLE SHOWING THE RESPONDENTS RATEING ON THE BRAND IMAGE OF NANDINI PRODUCTS SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 72
SL.NO 1 2 3 4 5
Brand image Excellent Good Average Below average Poor Total
Percentage (%) 56 22 15 04 03 100
ANALYSIS: From the above table we can observe that 56 percent of respondents says that the brand image is Excellent, 22percent of respondents says that it is Good, and 15 percent of respondents says that it is Average and 4 percent of respondents says that it is Below average and 3 percent of respondents says that it is Poor. CHART 2. 13. CHART SHOWING THE RATE OF BRAND IMAGE OF NANDINI PRODUCTS
INTERPRETTION: From the above chart we find that majority of 56 percent of respondents says Nandini product have Excellent brand image. TABLE 2. 14. TABLE SHOWING THE RESPONDENTS OPINION ABOUT THE IMPROVEMENTS IN NANDINIS PROMOTIONAL ACTIVITIES. SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 73
Improvement in SL.NO 1 2 promotional activities Yes No Total ANALYSIS: From the above table we can find that 78 percent of respondents felt that Nandinis promotional activities should get improved and rest of them felt that there is no need of any improvements in the promotional activities. CHART 2.14. CHART SHOWING THE RESPONDENTS RESPONSE TOWARDS PROMOTIONAL ACTIVITIES No. of respondents 78 22 100 Percentage (%) 78 22 100
INTERPRETTION: From the above chart we find majority of 78 percent of respondents feels that Nandini can improve its promotional activities. TABLE 2. 15. TABLE SHOWING THE RESPONDENTS SUGGESTION ON MEDIA FOR PROMOTION SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 74
SL.NO 1 2 3 4
Suggested media TV Radio Newspaper others Total
No. of respondents 53 09 31 07 100
Percentage (%) 53 09 31 07 100
ANALYSIS: From the table we can observe that 53 percent of respondents suggest TV, 9 percent of respondents suggest Radio, 31 percent of respondents suggest of Newspaper and 7 percent of respondents suggest other media to increase the sales. CHART 2. 15. CHART SHOWING THE RESPONDENTS SUGGEST MEDIA FOR PROMOTION
INTERPRETTION: From the above chart we find that majority of the respondents suggest that television is the best media for the advertisements. TABLE 2. 16. TABLE SHOWING THE FACTORS ON WHICH THE RESPONDENTS GIVE PREFERENCES WHILE PURCHASING THE NANDINI PRODUCTS. SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 75
SL.NO 1 2 3 4 5
Nandini products Price Quality Quantity Sales offers Others Total
Percentage (%) 44 29 16 06 05 100
ANALYSIS: From the above table we can observe that 44 percent of respondents look at the price while they buying the product, 29 percent look at the quality, 16 percent look at the quantity, 6 percent look at the sales offers and 5 percent look at the other attributes. CHART 2. 16. CHART SHOWING THE RESPONDENTS GIVE PREFERENCES WHILE PURCHASING THE NANDINI PRODUCTS
INTERPRETTION: From above chart we can find majority of 44 percent respondents look at the Price of products while purchasing products.
3. CHI-SQUARE ANALYSIS
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The chi-square test is the one of the simplest and most widely used non-parametric tests in statistical work. The chi-square test is the Greek letter. The chi-square test was first used by Karl Pearson in the year 1990.
Formula for Calculating Chi-Square Test:

Chi- Square = (O-E) ^2/E O= Observed Frequency E=Expected Frequency Steps to determine the value of chi-square: i. Calculate the expected frequencies. In general the expected frequency for any call can be calculated from the following equation: E = RT*CT / N E = Expected Frequency RT = the row total for the row containing the cell. CT = the column total for the column containing the cell. N = the total number of observations. ii. iii. Take the difference between observed and expected frequencies and obtain the squares of these differences, i.e., obtain the values of (O-E) ^2. Divide the values of (O-E) ^2 obtained in step (ii) by the respective expected frequency and obtain the total {(O-E) ^2/E}. This gives the value of chi-square which can range from zero to infinity. Degrees of Freedom: Degree of Freedom = (R-1) (C-1) Where: R= Number of Rows C= Number of Columns Rule: If the table value is more than the calculated value then, null hypothesis is Accepted. C.V < T.V = Accept Ho. If the table value is less than the calculated value then, null hypothesis is Rejected. C.V > T.V = Reject Ho.
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CHI-SQUARE -TABLE 3.1

TABLE SHOWING ANALYSIS OF RELATIONSHIP BETWEEN GENDER AND MONTHLY INCOME LEVEL. Null Hypothesis (Ho): There is no relationship between the age group of respondents and monthly income of respondents. Alternative Hypothesis (Ha): There is relationship between the age group of respondents and monthly income of respondents.
M.inco me Gender Male Female Total
Below 10000 6 10 16
1000015000 11 27 38
1500020000 10 26 36
Above 20000 3 7 10
Total 30 70 100
O(observed frequency) 6 11 10 3 10 27 26 7 Total
E(expected frequency) 4.8 11.4 10.8 3 11.2 26.6 25.2 7
(O-E)^2/E 0.30000 0.01404 0.05926 0.00000 0.12857 0.00602 0.02539 0.00000 0.53328
Chi-Square = (O-E) ^2 / E = 0.53328 SVIT DEPARTMENT OF MANAGEMENT STUDIES Page 78
Degrees of freedom = (R-1) (C-1) = (2-1) (4-1) =3 At the 5%Level of Significance the table value is 7.815 INTERPRETATION: Calculated Chi-Square value is 0.53328. Table value of Chi-Square at 5% level of significance is 7.815. Here the table value is more than the calculated value, i.e. 0.53328< 7.815. Hence the null hypothesis is accepted. So, we can conclude that there is no relationship between gender and monthly income.
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CHI-SQUARE TABLE 3.2

TABLE SHOWING ANALYSIS OF RELATIONSHIP BETWEEN GENDER AND AGE GROUP: Null Hypothesis (Ho): There is no relationship between the gender of respondents and age group of respondents. Alternative Hypothesis (Ha): There is relationship between the gender of respondents and age group of respondents.
Age Gender Male Female Total Above 55 years 3 7 10 Total 30 70 100
Below 18 2 4 6
18-25 Years 5 12 17
25-35 Years 11 26 37
35-45 years 8 18 26
45-55 Years 1 3 4
O 2 5 11 8 1 3 4 12 26 18 3 7 Total
E 1.8 5.1 11.1 7.8 1.2 3 4.2 11.9 25.9 18.2 2.8 7
(O-E)^2/E 0.02222 0.00196 0.00090 0.00512 0.03333 0.00000 0.00952 0.00084 0.00038 0.00219 0.01428 0.00000 0.09074
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Chi-Square = (O-E) ^2 / E = 0.09074 Degrees of freedom = (R-1) (C-1) = (6-1) (2-1) =5 Level of Significance 5% INTERPRETATION: Calculated Chi-Square value is 0.09074 Table value of Chi-Square at 5% level of significance is 11.070. Here the table value is more than the calculated value, i.e. 0.09074 < 11.070. Hence the null hypothesis is accepted. So, we can conclude that there is no relationship between the age group of respondents and gender of respondents.
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4. FINDINGS
Out of 100 respondents, most of them were in the age group of 25-35 Years (37%) and majority of them were female. Majority of respondents were businessmen (34%) by profession. From the survey it is revealed that the majority of the respondents were in the income group of 10000-15000(38%)
From the study it has been observed that 96%of respondents seen the nandini The advertisement has influence to majority 71% of respondents to
products advertisement.
recommend the product to others to buy.
From the study it has been observed that 86%of the respondents say that nandini has good market position because of its promotional activities. From the study it has been observed that 78% of respondents says that Nandini products are overpriced. From the study it has been observed that Majority of respondents (42%) prefer price offer as their preferred promotional schemes. From the study it has been revealed that majority of 66% of the respondents think that using celebrities in advertisements of Nandini products can increase their sales.
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From the study it has been observed that Majority of respondents58% mostly found the Nandini company advertisement. From the study it has been revealed that majority of 42%of respondents like nandini sweets. From the study it has been revealed that majority 56%of respondents says that Nandini have excellent brand image. From the study it has been revealed that majority 78%of respondents feels that Nandini can improve its promotional activities. From the study it has been observed that majority of (53%) of respondents suggest company has to promote their advertisement through TV. From the study it has been observed that Majority (44%) of respondents look for price while purchasing Nandini products.
5. SUGGESTIONS
The displays and POP (Point of Purchase) materials must be improved and made more attractive. so that customers may get induced to purchase Nandini milk. The company should move a step ahead to provide attractive offers and discounts on bulk purchases. The company should adopt better tetra packing for avoiding spoilage of milk. Nandini products should be distributed through wide forms like chat stalls, super markets etc. by giving them attractive commission and offers. Company should adopt various technologies to maintain hygiene and quality of products. Company should offer reasonable price to sustain in the market by facing heavy competition from the competitors. Facility should be made to receive complaints from customers and it must be seen that the complaints are attended carefully. Company should improve promotional strategies.
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6. CONCLUSION
Our society consists of a heterogeneous people. Their value, beliefs, attitudes are different from one another. Some people will give preference for quality and freshness. Some will give preference for availability, some will give preference only quantity and thickness of milk. The company should study the attitude of consumer and accordingly should satisfy the consumers. It should give importance for quality, freshness and price of the milk and try to satisfy all the category of people. But it is not possible to satisfy the consumers only through the company but retailors should also cooperate with the company. The company should concentrate more on advertisement which helps to attract new customers. Even illiterates can also aware of Nandini products through TV; the effectiveness of advertisement can also boost the sales and ultimately capturing a large market and competitors.
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1.

1.2. About milk

1.3. Karnataka milk federation (KMF)

SVIT DEPARTMENT OF MANAGEMENT STUDIES

1.5. Organization status

SVIT DEPARTMENT OF MANAGEMENT STUDIES

1.6. Dairy industry- an overview

NDDB NDDB State level milk Federation

1.7. History of dairy co-operative in India

SVIT DEPARTMENT OF MANAGEMENT STUDIES

SVIT DEPARTMENT OF MANAGEMENT STUDIES

SVIT DEPARTMENT OF MANAGEMENT STUDIES

SVIT DEPARTMENT OF MANAGEMENT STUDIES

KMF corporate office complex at koramangala at an estimated cost of Rs.2.90 crores.

(E) Performance highlights

2.1. Background and inception of the company:

2.2. Nature of business carried:

2.3. Vision, mission, quality policy:

2.4. Product profile:

HOMOGENISED TONED MILK

FULL CREAM MILK

SVIT DEPARTMENT OF MANAGEMENT STUDIES

SVIT DEPARTMENT OF MANAGEMENT STUDIES

SVIT DEPARTMENT OF MANAGEMENT STUDIES

SVIT DEPARTMENT OF MANAGEMENT STUDIES

SVIT DEPARTMENT OF MANAGEMENT STUDIES

SVIT DEPARTMENT OF MANAGEMENT STUDIES

NANDINI SET CURDS

SVIT DEPARTMENT OF MANAGEMENT STUDIES

2.5. Area of operation:

2.6. Ownership pattern:

2.7. Competitors information:

2.8. Infrastructural facility:

SVIT DEPARTMENT OF MANAGEMENT STUDIES

SVIT DEPARTMENT OF MANAGEMENT STUDIES

1993-Commercial production and marketing of Nandini Flavored in September.

SVIT DEPARTMENT OF MANAGEMENT STUDIES

2.10. Work flow

LAB TES T FAT/SNF/ ACIDITY

Plunging Sampling LAB TES T

Pump the Milk through Chiller maintain the Milk temp.

Store the Raw Chilled Milk in insulated storage Tank RM silo.

SVIT DEPARTMENT OF MANAGEMENT STUDIES

2.11. Future growth & prospects:

SVIT DEPARTMENT OF MANAGEMENT STUDIES

3. MCKINSEY'S 7S FRAME WORK TO MOTHER DAIRY

Theory of mckinsey's 7s models:

SVIT DEPARTMENT OF MANAGEMENT STUDIES

SVIT DEPARTMENT OF MANAGEMENT STUDIES

Manager HR & Administration Manager Production

Assistant Manager HR & Administration Deputy Manager Production

Training officers HR & Administration Assistant Managers Production

Assistant Manager Quality Control

Deputy Manager Marketing

Assistant Managers Marketing

Deputy Manager Finance

Assistant Manager Finance

Assistant Manager Purchases

Assistant Manager Systems

SVIT DEPARTMENT OF MANAGEMENT STUDIES

PRODUCTION MANAGER [1] DY. MANAGER PRODUCTION [1]

ASSI. MANAGERS PRODUCTON [4]

TECHNICAL MANAGER OF PRODUCTION